This paper analyses a key element of the attractiveness of foreign direct investment (FDI) in Pakistan with special emphasis on computing the cost of capital in effecting the rate of return and the internal cash flow for investment of the investing firms. Using Jorgenson's Neoclassical...

The analysis shows that the process of shifting the burden of stabilisation to the lower tiers of the government has seriously shrunk the capacity of the provincial governments to invest in social services. This has resulted in low social expenditures and, consequently, poor social conditions in...